- 1.The benefits of the Convention are not applicable to companies or other persons which are wholly or partly exempted from tax by a special regime under the laws of either one of the Contracting States. They are also not applicable to income from such companies or other persons derived by a resident of the other State, nor to shares, “jouissance” rights or interests in such companies or other persons.
- 2.The provisions of paragraph 1 of this Protocol provision are also applicable in case a company or other person is treated under the administrative practice of that State in the same or similar way as a company or person as meant in that paragraph.
- 3.The competent authorities of the States shall by mutual agreement decide which special regime is meant in the provisions of paragraph 1 of this Protocol provision. The provisions of paragraph 1 are also applicable to any identical or substantially similar legislation in addition to or replacing such a special regime enacted after 1 January 2007 unless the competent authorities of the States decide otherwise by mutual agreement.
- 4.It is understood that either Contracting State may rely on the use of generally accepted tax principles with a view to preventing abuse of the Convention. In any case where a Contracting State intends to apply this paragraph, its competent authority shall in advance consult with the competent authority of the other Contracting State.
